IndiGo faces a tax penalty of Rs 944 crore and describes the ruling as "frivolous and erroneous."

IndiGo claims that the Chennai Joint Commissioner assessed an additional fine of Rs 2.84 crore, while the Assessment Unit of the Income Tax Department issued the penalty.

For the assessment year 2021–2022, the Income Tax Department has imposed a penalty order of Rs 944.20 crore on IndiGo's parent firm, InterGlobe Aviation. But according to the airline, the ruling is "erroneous and frivolous."

In addition, the airline stated that the penalty order "does not comply with the law" and restated its position that it is "erroneous and frivolous." IndiGo has stated that it will contest the decision and seek redress through the judicial system. Additionally, the airline made it clear that there would be no "significant impact on financials, operations, or other activities of the company" as a result of the penalty.

IndiGo has previously been subject to tax-related fines. InterGlobe Aviation announced on February 5 that tax authorities in Chennai and Delhi had sent it GST demand orders totaling Rs 116 crore. A penalty of Rs 113 crore was levied by the Delhi Additional Commissioner, mostly for classifying services rendered to recipients abroad as taxable rather than as service exports.

In another case, IndiGo was fined slightly more than Rs 25 lakh by the Customs Department on January 15 for jet fuel duties. The order about the additional charge on remaining Aviation Turbine Fuel (ATF) was issued by the Joint Commissioner (Customs) at Ludhiana. Additionally, after rejecting a duty exemption on the import of aircraft parts, the Principal Commissioner of Customs at the Air Cargo Complex (Import) earlier assessed a penalty of Rs 2.17 crore on January 6.

IndiGo has insisted that these fines had "no material impact" on its operations, business processes, or financials in spite of the ongoing tax battles.